Asian Shares Up; BOJ Eases Further

By

Daniel Inman And

Brad Frischkorn

Updated Dec. 20, 2012 9:39 a.m. ET

Japanese stocks fell Thursday, but other Asian markets generally rose as the
Bank of Japan
expanded its asset-purchase program.

Investors also were focused on U.S. budget talks and efforts to avoid the so-called "fiscal cliff" of automatic spending cuts and tax increases that will take effect next year in the absence of a fresh accord. U.S. markets had weakened Wednesday as investors assessed the latest smoke signals from Washington.

Thursday's fall in Japanese shares came a day after the market had enjoyed its strongest day in more than a year. But selling in heavyweights such as
Fast Retailing
was partially blunted by stepped-up foreign buying of
Mitsubishi UFJ Financial Group
and other financial shares.

The Nikkei Stock Average fell 1.2% to 10039.33, its first loss in four sessions, and the dollar retreated against the yen.

Trading volume continued to impress, as 3.74 billion shares changed hands, the third straight session the figure has surpassed the 3 billion mark. Wednesday saw a year-high 4.03 billion shares traded as foreign investors zeroed in on the market.

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The BOJ's board voted unanimously to take additional easing action, increasing the size of its asset-purchase program by ¥10 trillion, or about $119 billion, to ¥101 trillion, and could continue to pursue more powerful easing measures. The central bank had been expected to introduce some easing measures.

Fast Retailing tumbled 4.1%. Shares in the operator of Uniqlo stores were seen ripe for profit-taking after having risen over 27% since Nov. 15. Among other recent outperformers,
Softbank
lost 3.8% and
Canon
fell 2.9%.

In other markets, South Korea's Kospi Composite rose 0.3% to 1999.50. The market had been closed Wednesday for the country's election, which saw Park Geun-hye elected as the next president. While the market impact of the election is expected to be limited,
Hyundai Engineering & Construction
rose 4% on hopes that the new government might take measures to revive the housing and construction sectors.

In mainland China, the Shanghai Composite Index was up 0.3% at 2168.35, with financial stocks down following a strong run as the market had already gained 10.4% up to Thursday, from its most recent trough on Dec. 3.
China Minsheng Banking
Corp.
dropped 1.1%.

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